4. Use customer value to prioritize. The steps above allow you to identify the issue and to act. But the ability to prioritize can have the greatest impact. For most companies, a small percentage of customers account for the lion's share of revenue. This simple but vital insight helps you to focus your retention budget on customers with the greatest potential future value. So you should incorporate customer value in your customer management dashboard; it enables you to prioritize and decide not just which relationships you want to retain, but also how much you are willing to invest to save them.
Customer retention remains a top priority for most organizations, especially in a struggling economy. By taking a systematic and customer-value oriented approach, however, you are better equipped to build and maintain long-lasting, profitable customer relationships.
Niall Budds is director of strategy and planning for Charlotte, N.C.-based marketing and technology service provider Quaero, a CSG Systems company. He can be reached at email@example.com.